Closing costs will still be required if you buy a house in foreclosure, but you might be able to lower or avoid them, depending on the circumstances. What's the Condition of the Property? A vacant property is subject to neglect, vandalism and theft.

Is it worth it to buy a foreclosed home?

The main benefit of purchasing a foreclosed home is savings. Depending on market conditions, you can purchase a foreclosed home for considerably less than you'd pay for comparable, non-foreclosed homes. ... Foreclosed homes are sold in "as-is" condition, and are typically unavailable for a walk-through before purchase.

How much should you offer on a foreclosure?

You should probably make your initial bid at a price that's at least 20% below the current market price—perhaps even more if the property you're bidding on is located in an area with a high incidence of foreclosures. If you can pay for the property and any necessary renovations in cash, you're in an enviable position.